Michael Saylor's MicroStrategy Leads Plunge in Crypto-Related Stocks

Bitcoin has tumbled below $24,000 for the first time in 18 months, and ether dropped to a 15-month low.

AccessTimeIconJun 13, 2022 at 1:03 p.m. UTC
Updated Jun 13, 2022 at 3:00 p.m. UTC

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Stocks like MicroStrategy (MSTR), Coinbase (COIN) and the cryptocurrency miners are all reeling in premarket action on Monday, with macro headwinds continuing to rattle global equity markets, and the Celsius network suspending withdrawals adding to the pain in crypto.

  • Crypto lending network Celsius suspended withdrawals, citing "extreme market conditions." The news sent bitcoin (BTC) lower by about $1,500 within minutes, a decline that has continued into Monday morning. Bitcoin is currently at an 18-month low of $23,900.
  • Business-intelligence software firm MicroStrategy is leading crypto-related stocks lower, down 25% premarket. A bitcoin price of $21,000 had been talked about as a point at which the company could face a margin call, but CEO Michael Saylor previously denied that, saying bitcoin would need to fall to about the $3,500 level before that would begin to become an issue.
  • At a price of $22,960, MicroStrategy would be down more than $1 billion on its bitcoin bet.
  • Coinbase is lower by 17.6% To $48.42, and now off 87% from its all-time high hit in November.
  • It's ugly for the miners as well, with Marathon Digital (MARA), Riot Blockchain (RIOT) and Hut 8 (HUT) all sporting double-digit percentage declines.
  • Checking the macro picture, tighter monetary policy from Western central banks continues to send bond yields sharply higher and equity prices lower. Nasdaq 100 futures are down 2.8% and S&P 500 futures are off 2.4%. The 10-year U.S. Treasury yield is up another 10 basis points to 3.27%.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

CoinDesk - Unknown

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Trending

1
CoinDesk - Unknown
First Mover Asia: How Traders Are Shorting Tether Stablecoins; Bitcoin Falls but Holds Above $20K

Hedge funds are increasingly betting against USDT in anticipation of it losing value amid concerns about the coin’s reserve backing and systemic risks; ether drops.

CoinDesk - Unknown
2
CoinDesk - Unknown
Hurry Up With Crypto ID Checks, FATF Tells Countries

After the potentially privacy-busting ‘travel rule’ for crypto transfers, global standard-setters at the Financial Action Task Force have their eyes on Defi, NFTs and unhosted wallets.

CoinDesk - Unknown
3
CoinDesk - Unknown
Messari Research: DCG’s Barry Silbert Wins From SEC ETF Stalemate, but Investors Lose

Messari’s Ryan Selkis says Grayscale's product is broken, but SEC leadership won't let them fix it.

CoinDesk - Unknown
4
CoinDesk - Unknown
OpenSea Reports Email Data Breach

An employee at an outside contractor tasked with managing OpenSea email newsletters copied the list of customer emails and shared it with an outside party, OpenSea says.

CoinDesk - Unknown